Somewhat predictably, losses have continued into 2026 for investment trust Finsbury Growth & Income (FGT). The company’s latest factsheet shows it posted a 5.6% drop in NAV and a 5.7% share price drop in January.
That compares with a 3.1% gain for the month for the FTSE All Share index, the trust’s benchmark. The trust also got off to a poor start to February, losing over 6% on the first day of the month.
| Share price: 735.3p | Discount to NAV: -10.4% |
| NAV/Share: 820.4p | Net yield: 2.5% |
AI headwinds
The top three detractors from the company’s performance in January were Experian (EXPN), RELX (REL) and Sage (SGE). All three stocks were victims of an abrupt sell-off due to fears AI posed a threat to their businesses.
Manager Nick Train argues instead each company has ‘a credible opportunity to bring AI-enhanced services to their customers’. However, ‘We must acknowledge with disappointment that the share prices are saying we are wrong’, concedes Train.
Sage shares lost 10% last month despite the firm posting 13% growth quarterly sales in North America, its largest market. Sage also confirmed its full-year revenue guidance and pointed to margin expansion.
‘This was an impressive set of results, yet clearly not enough to allay investors’ fears AI might disrupt Sage’s business in the future’, concludes Train. It was a similar story with Experian, whose shares slumped to a two-year low last month after reporting earnings.
Investors will be hoping for a better reaction to results from Unilever (ULVR), which reports on Thursday 12 February. The stock is now the largest holding in the portfolio at 11.6% after falls in Train’s tech-related investments.
There isn’t much to say we haven’t already said when it comes to Finsbury Growth & Income. Whether the threat from AI to firms like Experian, RELX and Sage is real or not, it is the perception which matters.
Investors have given the current management and the strategy their explicit backing, now they have to hope they are right. With the shares trading at their lowest level since the pandemic, will they stick or twist?
Read the latest factsheet here: https://www.finsburygt.com/performance-analysis/share-price-information-performance/monthly-factsheets
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